Money Quotes

5 Investment Ideas You Can Steal from Albert Einstein Quotes

Remembering the Great Scientist Albert Einstein on the day of his birthday. Fourteenth March is celebrated as Albert Einstein Birthday the physician behind the Theory of Relativity. In this article we will be focusing some of the quotes of Albert Einstein that are focused on Investment ideas. Although Albert Einstein was of science background he has shared some quotes on Investment strategies that many of the Financial Websites does not cover much.

Money Quotes

Money Quotes #1 "Compound interest is the most powerful force in the universe"

Investing in the scheme that provides you compounding return will reap you huge amounts of returns at the end. Compound Interest is the interest on loan or invested amount referred to as principal amount, in compound interest is calculated based on both principal amount and the accumulated interest from time to time.

For example you invest 1000 in 8 percent investment scheme per annum. The compound interest for first year is 80 rupees and principal becomes 1080 and then interest of 8 percent is calculated on 1080 that gets to 1167 next year on 8 percent rate of return. 

If you leave this amount for compounding itself and look at the returns after 30 years the return you get is 10062. 10 times increase of invested principal at the rate of return of 8 percent.

Money Quotes #2 "In the middle of difficulty lies opportunity"

Stock Market works on modes they are Bull Market and Bear Market, when the stock market goes up and up we call the market bullish. When the market gets down or there is a crash from the higher side and keeps occurring every day we say that the market is bearish. Stock gets over valued during the Bullish phase and stock gets under priced in bearish mode. 

To understand this quote we will look at the bearish mode of market. When there is bearish mode people lose money and investors get stressed, many fund houses pull out their investments out of stock and there is panic in stock. We need to know that this is an opportunity and not the situation to panic and start investing when everyone is selling the stock.

Money Quotes #3 "Time is what prevents everything from happening all at once."

You research investment schemes and then Invest your money in that scheme. For Example the rate of return is 8 percent per annum and you wanted that return on your investment. You Invest into the scheme and next day itself you cannot expect your investment to gain an extra 8 percent return on your investment. You will have to wait for one year to get your return based on the Investment policy.

The stock that you have in your watch list can't keep going up and always up. It will reach its peak and will fall down once the over value price has reached. Similarly you may be expecting a stock to report good returns, after reporting 30 percentage net profit in the market hours. You may have seen that stock may go down or may not raise more than 5 percent as well. This is because time is preventing it from happening all at once.

Money Quotes #4 "If you cant explain it to a six year old, you don't understand it yourself "

Generally new stock investors who have just passed out of college and started earning invest blindly based on stock market news. They don't know much about the micro and macro fundamentals of stock, just buy and hold later they claim loss and get back home saying they went broke investing in the stock market. 

Reputed Investors teach people that you should know the company profile, their a-z news, future new product launches, product market share etc. before selecting it for Investment. So I advise stock investors to get to know all the details about the company before investment and then invest in it.

Money Quotes #5 "Anyone who has never made a mistake has never tried anything new."

You should fail multiple times so that you will keep succeeding by learning from earlier failures. Here are some of the investment failures you may have made but regretting now. Investment in low returning schemes like ULIP and Endowment Plans. Investment based on your friend, colleague and relative recommendation and currently you are into loss.

With these lessons you should understand that humans make investment mistakes, they can correct them as soon as they make the mistake. Either closing the investment scheme or exiting the stock that's giving you loss continuously. Once you get expert in investing you shall be the role model and start teaching others.

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